If demand is linear (a straight line) then price elasticity of demand is ?
Correct answer: A. elastic in the upper portion and inelastic in the lower portion
- A. elastic in the upper portion and inelastic in the lower portion
- B. inelastic in the upper portion and elastic in the lower portion
- C. inelastic throughout
- D. constant along the demand curve
Explanation
On a straight-line demand curve, elasticity is not constant: the upper portion is elastic, the midpoint is unit elastic, and the lower portion is inelastic. Thus option a gives the correct pattern.
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